US stocks rise on inflation data

DPA New York, May 15 (DPA) US stocks rallied Wednesday after government data showed consumer prices had risen less than expected. Prices for US consumer goods rose at a seasonally adjusted rate of 0.2 percent in April, the Bureau of Labor Statistics said..

The Consumer Price Index increase was less than analysts had predicted and declined from a 0.3 percent increase in March despite rising food prices.

“Lower inflation is extraordinarily important for the market,” Eric Green of Penn Capital Management told Bloomberg financial news. “It’s wonderful news to have an economy that is being stimulated by a lot of things and at the same time prices are not going up. This could allow financial and discretionary stocks to perform in the short term.”